Dollar General Shares Dive 25% After Slashing Sales Outlook, Cites Struggles Among Its Lower-Income Customers

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Dollar General shares plummeted 25% after the retailer slashed its sales and profit outlook for the year, indicating financial struggles among its lower-income customers. The discount retailer reduced its fiscal 2024 sales growth and earnings projections from previous estimates. Dollar General's earnings per share and revenue fell short of Wall Street expectations. CEO Todd Vasos attributed weaker sales to financially constrained customers and acknowledged the need for store improvements and better inventory management. Competitor Dollar Tree's shares also fell in response.
Transcript
00:00It's Benzinga and here's what's on the block.
00:03Dollar General shares plummeted 25% after the retailer slashed its sales and profit
00:07outlook for the year, indicating financial struggles among its lower-income customers.
00:12The discount retailer reduced its fiscal 2024 sales growth and earnings projections from
00:16previous estimates.
00:18Dollar General's earnings per share and revenue both fell short of Wall Street expectations.
00:23CEO Todd Basos attributed weaker sales to financially constrained customers and acknowledged
00:28the need for store improvements and better inventory management.
00:31Competitor Dollar Tree's shares also fell in response.

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